Vol. 3, No. 3 March, 1999
NumberSubject
030301Lupin Poised to Launch Two Oral Cephalosporins
030302Ban on Export of Drug Molecules Not Registered in India
030303Dee-Pharma to Sell Drugs Unit
030304Nicholas and Hoechst in Arrangement to Jointly Market Four Products
030305Rifampicin, Aspirin, Theophylline Prices Revised by Government
030306Glaxo's Exports Grow by 46 Per Cent
030307Budget Has a Positive Impact on the Pharmaceutical Industry
030308Controversy Over Ban on Export of Molecules for Drugs Not Registered in India







































030301 Lupin Poised to Launch Two Oral Cephalosporins

Reportedly, Lupin is poised to launch two new oral cephalosporins in India. It will also be introducing these in the US market through CEPH, its joint venture in that country. The company will also start manufacturing the third-generation cefixime and begin commercial production of ceftibuten shortly. The products are much in demand overseas and the company is targeting sales of Rs 30 crore in three years in India. With this Lupin will be enlarging its cephalosporin portfolio. The products have been developed at the company's process-development facilities at Mandideep and commercial production is expected to be at its Ankleshwar plant.

030302 Ban on Export of Drug Molecules Not Registered in India

The controversy over export of drug molecules not registered in India has been referred to the Drug Technical Advisory Board. The Board will formulate a broad policy framework to issue no-objection certificates for export of drugs not allowed for marketing in India. Indian pharmaceutical companies have alleged that they have been losing export orders worth Rs 150 crore due to the Drug Controller of India's view that there was a lack of clarity in the guidelines for clearing for export ingredients of drugs not allowed to be marketed in India. Sildenafil citrate, an active ingredient in the manufacture of the potency drug Viagra is such a molecule behind the controversy.

030303 Dee-Pharma to Sell Drugs Unit

Dee-Pharma has sought BIFR permission to sell its bulk drugs plant at Bhiwadi, Rajasthan, for Rs 7 crore. Also on the block is its gelatine capsule plant at Ghaziabad. The company was declared sick in 1998 and was directed not to sell any fixed or current assets without the permission of the BIFR. It is hoped that the sale of these units will help to revive the company.

030304 Nicholas and Hoechst in Arrangement to Jointly Market Four Products

A joint marketing arrangement between Hoechst Marion Roussel and Nicholas Piramal will involve four Hoechst molecules, including a not-yet-launched advanced anti-diabetes product. Nicholas has a field force of 1000 and Hoechst has 800 and the centre of attraction will be the advanced anti-diabetes product glimepiride, sold under the brand name Amaryl.

030305 Rifampicin, Aspirin, Theophylline Prices Revised by Government

The National Pharmaceutical Pricing Authority (NPPA) has increased prices of rifampicin from Rs 4,807 per kg to Rs 4,885 per kg and theophylline prices from Rs 476 per kg to Rs 499 per kg and aspirin prices from Rs 100 per kg to Rs 123 per kg.

The beneficiaries are formulators that use the bulk drug to produce finished dosage forms. Lupin is the market leader in rifampicin with a market share of 40 per cent in formulations. Others in the field include Novartis and Glaxo. The formulators of theophylline are German Remedies and Cipla.

030306 Glaxo's Exports Grow by 46 Per Cent

Glaxo's exports grew by 46 per cent and it is all set to launch several drugs like lamivudine for AIDS, lamotrigine for epilepsy, valicyclovir for herpes and the anaesthetic remefintenil. It has also entered into talks with Ranbaxy for a marketing pact under which both companies will market the new drug-delivery system of the cephalosporin anti-infective cefalexin. Glaxo is also considering sale of its property in Chennai for around Rs 20 crore.

030307 Budget Has a Positive Impact on the Pharmaceutical Industry

The government has announced two high level committees to review the price controls imposed on the Indian pharmaceutical industry through its budget. This is a positive development for companies where a large share of the turnover comes from products under price control. The budget also announced automatic approval for FDI from 51 per cent to 74 per cent which will result in multinational corporation increasing their equity stakes in their present joint ventures instead of going in for 100 per cent subsidiaries. Another positive development is the extending of the MODVAT credit from 95 per cent to 100 per cent of the credit available and the extension of weighted reduction on research and development expenditure of 125 per cent till 2005. The budget has also announced duty exemption on products manufactured by the SSIs under the brand name of another entity in rural areas which will enable companies to subcontract manufacture of branded formulations to rural areas.

030308 Controversy Over Ban on Export of Molecules for Drugs Not Registered in India

The controversy over the lack of clarity over the export of molecules for drugs not registered for sale in India has been resolved with the Drug Technical Advisory Board (DTAB) clearing the export of such molecules. The controversy was over export of molecules such as sildenafil citrate which is used in the manufacture of Viagra by Pfizer. The industry alleged that this rule had denied them of export earnings amounting to Rs 200 crore. However, the DTAB has imposed some conditions on such exports which are viewed as being softer than those expected earlier. The conditions are understood to include a method of checking misuse of the export licences wherein products meant for exports land up in the Indian market.